Slingsby H.c Regulatory News (SLNG)

22 Apr 2005 14:13

Slingsby(H.C.)Plc22 April 2005 H C SLINGSBY PLC Unaudited preliminary announcement for the year to 31 December 2004 Statement by the Chairman It gives me great pleasure to report that the encouraging first half performancethat I mentioned in the interim results announcement was maintained for thewhole of the year. We have achieved another record pre-tax profit figure of£1.6m, an increase on last year of 32% on a turnover of £19.1m, which was anincrease of 8.6% on the previous year. Throughout the year we have enjoyed a consistently improved order intake level,which is particularly pleasing given that there have been challenging externalforces such as several interest rate rises and sharp increases in steel and oilprices. Our improved turnover has been driven by our focused marketing strategy withimproved targeting of our campaigns and further development of our customerloyalty scheme. We continue to position ourselves as a value added single sourceprovider and have continued to enhance the breadth of our product portfolio. Theincreased activity has been supported through operational reorganisation withinour customer service centre and the development of our marketing team. We have also been satisfied with the progress of our wholly owned subsidiary,Slingsby Mail Order Limited in the Republic of Ireland which commenced tradingin March 2004. Considerable progress has been made during the year on both of our ongoingstrategic projects, which I mentioned in the company's interim resultsannouncement. We have selected a new business system provider and we are workingclosely with them towards an implementation of the system in the third quarterof 2005. Running alongside this implementation we are to integrate a best ofbreed product information management and catalogue design solution. The chosensolutions will provide full multi-channel sales support across our cataloguewith particular focus on increased customer relationship management andmarketing support along with the facility to produce catalogues / mailers withfar greater efficiency. We believe this solution will crucially be flexibleenough to evolve with our business over time. With respect to the logistics project, we have signed a conditional agreementfor the purchase of a new site which will incorporate the head officeadministrative function and provide the necessary warehousing facility to enableus to gain greater control of our supply chain and most importantly improvecustomer service levels. We welcome to the board Mr. Lee Wright who joined us in 2000 and now takes onthe role of Marketing Director, having made a significant contribution to thebusiness as Head of Marketing. We wish him every success for the future. Your board has given careful consideration to the appropriateness of having yourcompany's shares listed on the Official List of the UK Listing Authority. Theboard has concluded that the Alternative Investment Market of London StockExchange plc (AIM) is more appropriate for a company of our size. We thereforeintend to move the trading of your company's shares to AIM without furtherdelay. The successful implementation of the two strategic projects we are embarkingupon this year is the responsibility of all our members of staff. It is theirapproach that has enabled the group to have such a successful 2004 and willensure further progress in the coming years. I thank them for their efforts in2004 and their continuing commitment. The nature of our activities has gradually changed over the past 20 years. Weare no longer predominantly a manufacturing business and have now evolved into amarketing led distribution business that has a small niche manufacturingcapability. In line with our evolving business direction the company has taken the decisionto rationalise its manufacturing and warehousing organisations, to create asingle workshop and distribution facility. Whilst being mindful of such factors as the impending general election and thecurrent state of the economic cycle, your group is well positioned at thepresent time with the order intake being ahead of the comparative figure lastyear, but I feel it necessary to sound a cautionary note in respect of thestrategic projects impacting on the group's overhead costs. The major part ofthe additional costs is the expenditure on the new business system, which ismore pronounced as we had fully written off the previous system some years ago.Other increased charges such as the effect of compliance with FinancialReporting Standard 17 on the retirement benefit scheme costs, additionalmarketing spend and the rationalisation costs in respect of the manufacturingdivision also have to be borne in mind. Whilst these costs will be felt thisyear, I am confident that our overall long term strategy will ensure that thegroup's prospects continue to be positive. Your board is pleased to recommend a final dividend of 35.0p per share (2003:30.0p per share). The total dividend for the year is therefore 42.0p per share(2003 35.0p per share). The record date will be 3 June 2005 and the payment datefor the final dividend is 1 July 2005. J F SlingsbyChairman22 April 2005 Registered OfficePreston StreetBradfordWest Yorkshire. BD7 1JF The following financial information does not constitute statutory accountswithin the meaning of section 240 of the Companies Act 1985. Full financialstatements will be issued to the shareholders on 17 May 2004 and will beavailable to members of the public at the registered office of the Company fromthat date and are also available on the company's web site, www.slingsby.com. The information for the year ended 31 December 2003 is an extract from thestatutory accounts to that date which have been delivered to the Registrar ofCompanies. Those accounts included an audit report which was unqualified andwhich did not contain a statement under Section 237(2) or (3) of the CompaniesAct 1985. The statutory accounts for the year ended 31 December 2004, uponwhich the auditors have still to report, will be delivered to the Registrarfollowing the Company's Annual General Meeting. The Annual General Meeting will be held on 16 June 2005. Consolidated Profit and Loss Account for the year ended 31 December 2004 Unaudited Audited 2004 2003 £'000 £'000 Turnover - continuing operations 19,108 17,579 --------- ---------Operating profit - continuing operations 1,451 1,118Bank interest receivable 169 109 --------- ---------Profit on ordinary activities before taxation 1,620 1,227Taxation (489) (376) --------- ---------Profit attributable to shareholders 1,131 851 --------- ---------Dividends :Interim paid 70 50Proposed final 350 300 --------- ---------Earnings per share 113.1 85.1p --------- --------- Earnings per share Basic earnings per share is based upon earnings of £1,131,000 (2003: £851,000)and on 1,000,000 (2003: 1,000,000) ordinary shares in issue during the year.There is no difference between basic earnings per share and diluted earnings pershare for both years stated. Group Balance Sheet as at 31 December 2004 Unaudited Audited 2004 2003 £'000 £'000 Fixed assets:Tangible assets 1,578 1,684Investments 300 300 --------- --------- 1,878 1,984 --------- ---------Current assets: Stock 1,625 1,526Debtors 3,657 3,246Cash at bank and in hand 5,281 4,286 --------- --------- 10,563 9,058Creditors: Amounts falling due within one year (5,148) (4,493) --------- ---------Net current assets 5,415 4,565 --------- ---------Total assets less current liabilities 7,293 6,549 Provisions for liabilities and charges:Deferred taxation (131) (92) --------- --------- Net assets 7,162 6,457 --------- ---------Capital and reserves:Called up share capital 250 250Profit and loss account 6,912 6,207 --------- --------- Equity shareholders' funds 7,162 6,457 --------- --------- Consolidated Cash Flow Statement for the year ended 31 December 2004 Unaudited Audited 2004 2003 £'000 £'000 Operating activities:Net cash inflow from operating activities (Note 1) 1,858 1,261Returns on investments and servicing of finance: Bank interest received 160 109Taxation: UK Corporation tax paid (349) (317)Capital expenditure and financial investment: Purchase of tangible fixed assets (394) (248)Sales of tangible fixed assets 76 26 --------- ---------Net cash outflow from capital expenditure and financial investment (318) (222) Equity dividends paid (350) (300) --------- ---------Net cash inflow before use of liquid resources 1,001 531 Management of liquid resources: Increase in short term deposits with banks (900) (500) --------- ---------Increase in cash in the period 101 31 --------- --------- Consolidated Cash Flow Statement Notes for the year ended 31 December 2004 1. Reconciliation of Operating Profit to Net Cash Inflow from Operating Activities Unaudited Audited 2004 2003 £'000 £'000 Net cash inflow from operating activities:Operating Profit 1,451 1,118Depreciation charges 314 335Profit on sale of tangible fixed assets (27) (1)Increase in stocks (99) (200)Increase in trade debtors (167) (382)Increase in prepayments (96) (133)Increase in trade creditors 285 287(Decrease)/increase in other taxation and social security (9) 108Increase in other creditors and accrual 206 129 --------- ---------Net cash inflow from operating activities 1,858 1,261 --------- --------- 2. Reconciliation to Net Cash Year ended Year ended 31/12/04 31/12/03 Unaudited Audited £'000 £'000Changes during the yearNet cash at 1 January 4,286 3,755Increase in net cash 101 31 Movement in short term deposits 900 500 Exchange adjustment (6) - --------- --------- Net cash 5,281 4,286 --------- ---------Represented by: Liquid resources 4,900 4,000Cash in hand and at bank 381 286 --------- ---------Net Cash 5,281 4,286 --------- --------- 3. The financial statements, which are unaudited, have been prepared on the basis of the accounting policies set out in the 2003 Annual Report and Accounts. This information is provided by RNS The company news service from the London Stock Exchange